Morgans Stanley cuts PT, earnings estimates for Australian wealth managers

Challenger

11/01/2024 01:32

** Morgan Stanley cuts price target of financial
conglomerates Insignia Financial  IFL.AX , AMP  AMP.AX  and
Challenger  CGF.AX  on earnings headwinds 
    ** Brokerage sees medium-term earnings headwinds for IFL;
lowers underlying earnings forecasts by 8% and 10% in FY24 and
FY25
    ** Morgan Stanley cuts PT of IFL to A$2.15 from A$2.85 and
downgrades stock rating of IFL to "underweight" from
"equal-weight"     
    ** Morgan Stanley says AMP's improving wealth trends with
strong balance sheet and outflows are offset by its sub-scale
bank and margin pressure
    ** Brokerage lowers underlying earnings forecasts by 7% and
19% for AMP in FY23 and FY24; cuts PT to A$0.97 from A$1.23 
    ** Morgan Stanley cuts CGF's PT to A$6.75 from A$6.80;
lowers normalised earnings by 1% and 2.5% in FY24 and FY25
    ** AMP, CGF and IFL shares lost 29.3%, 14.8% and 29.9%,
respectively, in 2023  
 
    

 (Reporting by Megha Rani in Bengaluru)
 ((Megha.Rani2@thomsonreuters.com;))